• Profitable Coffee Shop for Sale in Amazing Location!

Profitable Coffee Shop for Sale in Amazing Location!

Jumeirah Lake Towers

550,000AED

License validity : Details in the advert
What are the Opportunities for a new owner : Details in the advert
How can the future owner improve this business? : .
Listed by : Owner
Monthly sale | Average monthly profit | Average monthly expense : Details in the advert

Description

Please read the advert carefully as we have included A LOT of critical information.

***THE BUSINESS IN A NUTSHELL:***

Our café focuses on the health-conscious segment of the industry. Our business model revolves around 3 types of products:

  1. Specialty coffee (the most premium coffee on Earth)
  2. Healthy smoothies and protein shakes
  3. Super healthy grab-n-go food

We have also just started a coffee subion model, where our customers can do some savings on their coffee by paying in advance collecting it once a day (guaranteeing traffic of that customer and creating opportunities for cross-sells).

The size of our little café is around 250 sqft, (grab-n-go concept), with tables and chairs outside (indoors).  

 

***THE LOCATION:***

We’re located on the 1st floor of a very prestigious and busy commercial tower. We have guaranteed traffic due to several factors:

  1. We’re a corner coffee shop, one side is inside a large gym, the other side faces a constant crowd on that floor.
  2. We’re the only café for the Gym (guaranteed traffic) and the gym is always conducting lots of marketing events.
  3. We’re also the only café on a very busy floor (prayer rooms for the entire tower, multiple customer service centers for various services, Typing services, Banks, ATM, right next to our shop…etc.)

***OUR REPUTATION:***

We have over 100 reviews on Google, with an average of 5 stars.

Our products and staff are just amazing, and this is the thing we’re the most proud of. Our staff are not just order takers, they’re true sales people and they know each of our customers.

 

***OUR FIXED COST: ***

  • Our rent is only 45K per year, all inclusive.
  • We do not pay DEWA, Empower or Internet, or anything at all, as this is paid by our landlord and it is a written part of our lease agreement. 
  • License cost renewal is around 20K per year, next renewal will be June 2023.
  • All of the VISAs, PIC training, Basic Hygiene, Food watch…etc. have been paid for.

 

***THE EQUIPMENT:***

We opened a few months ago, so we have state of the art equipment, most of it still under warranty.

 

***WHY ARE WE SELLING?***

We (my wife and I) set up businesses and sell them. That’s what we do. We’re not interested in keeping them once they take off. Our goal is to continue finding amazing locations and set up bullet proof businesses for sale.

There is already a manager there (and a deputy manager as a back up) and we have absolutely no more value to add. Time will consolidate the business’s reputation further, as more and more customers become loyal.

In the meantime, everything is 100% systemized and documented (That’s how the staff manages everything on its own, even when they just joined us). 

 

***WHO DOES OUR ACCOUNTING?***

Our accounting is done professionally by an accounting firm that is also certified auditor. So all the numbers are crystal clear, invoices and receipts are electronically saved in the accounting software and available any time. 

 

***HOW DO WE DO OUR MARKETING?***

  • In a very short space of time, we have generated a database of over 3000 WhatsApp numbers and use it to boost our traffic. This is direct access to nearby customers (same tower or right next to us) in real time.
  • The gym also conducts heavy marketing events every month and we benefit from them of course too.
  • We offer complimentary (cheap) filtered coffee to gym members as well, which also drives traffic to our shop every day.

But to be honest, none of these methods beats what our staff and products achieve on a daily basis, in terms of customer loyalty. We’ve designed best-selling recipes and hired & trained happy staff whose primary job is to build relationships with each customer (not just “order takers”).

 

***WHAT IF THE STAFF LEAVES, HOW WILL I SURVIVE WITHOUT THEIR KNOWLEDGE?***

First of all, the staff can’t leave before completing 2 years, unless they pay back their visa cost which is quite a deterrent (Employment contract includes this clause and is approved by authorities of course).

But more importantly, this business stands on its own. We do not build a business to then manage it. We build it so that we have nothing else to do and be ready to sell it.

That’s why, every recipe sheet, every supplier, every food costing, process, s, templates, management software is on our system. Our operational manual (S.O.P.) includes absolutely everything, including the way each equipment should be cleaned for example. We built it so that it can be operated by any staff and this works every day. We recruit staff based on their personality and attitude, never based on their experience, because our S.O.P takes care of the know-how.

 

***WHAT WE DO NOT HAVE:***

We do not have a kitchen. This means that although we have a restaurant license (on top of a café license), we’re not allowed to cook. We do not have gas arrival for example. You can assemble food like (sandwiches, açai bowls, salads…etc. but you can’t cook anything there (although air fryer, microwave and convection oven are allowed and we are using them already.)

 

***KEY FIGURES:***

We’ve been profitable 6 months after we started (we opened in June 2022), which is rare in the industry, but we attribute it to our great location, our products and staff.

We currently generate 5K to 10K per month (NET NET, after everything is accounted and b accrued for), and this is growing naturally as more and more people try our delicious products and interact with our super staff.

  • Current Sales: 28-30K AED per month (for now)
  • Fixed Monthly Expenses: 3,750 (Rent) + 5,200 (Salaries) + 1,666 (license)
  • Variable Expenses: Inventory (Buying Food and Drinks that we then sell)

 

***HOW TO GET IN TOUCH?***

If you feel you’d enjoy owning this kind of business, feel free to get in touch. We will NOT reply to chats on this platform, only phone calls or WhatsApp messages (+971 50 943 6873)

Finally, this is NOT a distress sale so if you feel your budget is not sufficient, then this is probably not for you. 

 

***HOW WE VALUED THIS BUSINESS***

We valued this business based on 3 criteria:

  1. Our initial investment (CAPEX) cost.
  2. Location Location Location (including low rent, no DEWA, no A/C, no internet cost) + Guaranteed daily traffic from the Gym members and government offices / banks on the same floor. + NO OTHER CAFES / RESTAURANTS ON THE SAME FLOOR
  3. Current sales performance (AED) + our secret recipes + proven (documented) processes & systems + a Self-Managed Business.
  • We did not factor in the growth potential of the business, as we continue “wowing” our customers! 
  • We did not even factor in our outstanding independent staff (they will run the business for you, if they’re allowed to continue doing that).

This opportunity is only for savvy investors that want a self-operating business generating monthly revenue. 

Please only use WhatsApp +971 50 943 6873 to connect, thank you.

 

***FREQUENTLY ASKED QUESTIONS***

“The current profit means that it would take me 7-8 years to generate a return at that price. Can you review the selling price so that at least I make a return after 2 to 4 years?”

Answer: 

Revenue is growing, you cannot take our current monthly NET Profit and draw a timeline. For example, the first 6 months, we were loosing money, it would have been also incorrect to have drawn a timeline at that point. This business has less than a year, and still has room to grow. We have not even used delivery services such as Talabat, Careem, Deliveroo…etc.

Since a lot of the people that call us for this opportunity are first time investors, please remember that an investment is just moving your money from one asset class (CASH) to another (Business, property…etc.), in the hope that it generates a better passive or semi-passive income (instead of generating much less at the bank). Just like we’re doing, the asset can always be sold again for cash, or be kept indefinitely.

“You said that you are part of the gym, what if the gym shuts down?”
Answer:
This is the oldest gym in JLT and survived 2 years of COVID. I think they’re shown their resilience and we’re very confident about this investment.

“To be honest, I’ve seen much cheaper businesses that generated more profit.”

Answer:

No you haven’t. Most likely, these are businesses that don’t account for ALL the costs like staff visa, gratuity accruals, license accruals…etc. If you are just presented a quick profit calculation on a spreadsheet, good luck with that business, reality will hit soon… Our cash flow is much higher than our profit numbers because they include essential accruals for future expenses and every minor cost is accounted for.

 

“So what will you be taking from the bank if we do the sale transaction?”

Answer:

Only our net profits. The rest of the cash flow is something that belongs to the company against upcoming, future expenses, such as VISA, gratuities, license renewals…etc. We followed strict accounting standards so every upcoming expense is accrued already.

 

“What is the process if I’m interested to discuss this business?”

Usually a business is sold following these 3 steps:

  1. Send us a WhatsApp (+971 50 943 6873) and we’ll send you some more details. You will then be able to visit our business any time after that.
  2. Based on the information in the advert and the extra details we will be sharing, it will be time for you to make an offer.
  3. If your offer is accepted (in principle), we will be starting the due diligence process, where we will let you access our numbers, accounting software, POS (Sales Transaction Software), Bank Statements…etc. to verify that everything is correct. with what we have mentioned in this advert and the extra information we will be sharing via WhatsApp / Phone call.

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Location

Jumeirah Lake Towers
Safety tips for deal
  1. Always meet face to face to finalize the deal.
  2. Transfer of Business requires to check all legal Documentation.
  3. Beware of unrealistic offers.
  4. Please report any suspecious activities.
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